21st Jul 2006 09:00
Arab Insurance Group (B.S.C.)20 July 2006 20 July 2006 Press Release Arig registers profits of $ 8.6 m for half year 2006 Manama: Arab Insurance Group (Arig) today announced net profits of US$ 8.6million for the first half year 2006. This represents an increase of 34% overthe net profit of US$ 6.4 million registered for the same period in the previousyear (excluding US$ 28.9 million of profits from discontinued operations). Gross premium writings during the half year were US$ 107.5 million, up from theUS$ 106.8 million registered for the same period in 2005 despite the significantscaling down of treaty business where several non-profitable treaty accountswere not renewed as part of Arig's strategy of maintaining strict underwritingdiscipline in the prevailing soft market. The increase in business was largelydue to strong growth in facultative premiums by 25%. Also, commencement ofoperations in Singapore led to premiums from the ASEAN region growing by 46%. The sharp correction in global financial markets towards the later part of thesecond quarter saw investment income decline to US$ 14.5 million for first halfyear 2006 from US$ 16.2 million for the same period last year. Shareholders' equity at the end of the half year amounted to US$ 269.5 millionwhich is almost at the same level as at year end 2005 notwithstanding thepayment of US$ 10 million in dividends for 2005. The book value of Arig's sharenow amounts to US$ 1.24 per share and its market value at 30 June was US$ 0.94per share. Commenting on the results, Mr. Yassir Albaharna, Arig's Chief Executive Officer,said, "We continue our focus on underwriting discipline and the profitablegrowth of our core reinsurance business which assumes critical importanceespecially in soft market conditions. Further, in keeping with the strategy offocusing on reinsurance, we recently completed the sale of our residual holdingsin Arab Lebanese Insurance Group, Lebanon, to a group of regional investors." Mr. Albaharna also announced the departure of Mr. Mathews John, the Company'sChief Financial Officer who leaves Arig shortly. "I take this opportunity tothank Mathews for his significant contribution to Arig over the many years thathe served the Company with distinction and wish him well on his imminentrelocation to N. America." Financial Highlights at 30 June 2006 (US$'000) 30 June Year 2006 2005 2005 Gross premiums written 107,474 106,786 173,652 Underwriting result 2,727 3,583 8,151 Investment income 14,527 16,152 33,042 Operating expenses 11,435 11,173 22,864 Profit from continuing operations 8,648 6,442 19,338 Profit from discontinued operations - 28,859 28,859 Net profit 8,648 35,301 48,197 Investment assets 646,697 577,509 659,426 Net technical provisions 383,202 373,745 346,549 Shareholders' equity 269,523 252,092 272,383 Total assets 929,489 844,723 902,228 Book value per share (US$) 1.24 1.16 1.26 ***************** For further information or enquiries, please contact Deepak Kanulkar Head of Corporate Communications on Tel: +973 17 544 321, Fax: +973 17 531155, Mobile: +9733933 9263. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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